Good to know
Fees & charges — evidence first
We list the main possible charges here, up front. The rule is simple: post-rental charges must be tied to a genuine cost you actually caused — at actual cost plus any disclosed handling fee, with the evidence. Most renters never see any of these.
Fines & tolls — these reach us as the registered keeper
When a speeding or traffic camera, parking warden, or toll system issues a notice to the vehicle's registered keeper, that notice comes to us. The process is always the same:
- 1
We receive the notice
The fine or toll is issued to the vehicle's registration. We receive it — by post, email, or via the rental platform.
- 2
We forward it to you immediately
We pass the original notice to you as soon as we get it, so you can pay directly to the authority and take advantage of any early-payment discount. Many Icelandic fines carry a 25% reduction if paid promptly — we want you to have that option.
- 3
If unpaid, we settle and recover
If the notice goes unpaid and we are required to settle it, we pay the fine, identify the driver from the rental record, and recover the actual fine amount plus a handling fee of ISK 3,000 from the card used for your booking (held by our PCI-compliant payment provider — we never see or store the full number). We attach the original notice as evidence.
| Type | What you pay | Our handling fee |
|---|---|---|
| Speeding or traffic camera fine | Actual fine amount (tip: 25% discount if paid promptly) | ISK 3,000 if it goes unpaid and we must settle it |
| Parking ticket or parking-app non-payment | Actual fine amount | ISK 3,000 if it goes unpaid and we must settle it |
| Road tunnel toll (e.g. Vaðlaheiði) | Actual toll — pay online within ~3 hours to avoid it reaching us | ISK 3,000 if it reaches us unpaid |
Handling fee covers the real administrative cost of receiving, recording, and forwarding the notice and identifying the renter from the rental record. It is not a profit margin. Exact amounts are confirmed in your rental agreement.
Other charges — only if they happen, all at actual cost
The table below lists the main other charges that can apply. None of these appear in a normal rental. Your exact price is confirmed when you book.
| Situation | Charge | Notes |
|---|---|---|
| Excessive cleaning — mud, sand, or waste inside | ISK 45,000 | Normal road dust expected and included. This applies only when the interior requires special wet-vacuuming or treatment. |
| Smoking or vaping inside the vehicle | ISK 45,000 | All vehicles are non-smoking. The fee covers deep-cleaning and ozone treatment. |
| Missing fuel on return | Actual fuel cost + ISK 3,000 refuelling fee | Full-to-full policy. The ISK 3,000 fee covers the time and admin of refuelling the vehicle; the fuel itself is charged at the current pump price. |
| Late return (over 1 hour past agreed time) | One extra rental day at the daily rate | Contact us if you know you will be late — we will do our best to accommodate you. |
| Lost or broken key | Actual replacement cost | Replacement keys in Iceland can be expensive (ISK 80,000–200,000 for modern push-button fobs). We source at actual cost. |
| Lost child seat, GPS, or other rented equipment | Actual replacement cost | Shown in your rental agreement for each item added. |
| Towing / recovery — when renter is at fault | ISK 675/km (min ISK 30,000) | Applies if you get stuck off-road, go off-road without a suitable vehicle, misfuel, or lock the keys inside. Breakdown due to mechanical fault is covered by our roadside assistance at no cost to you. |
| Tyre damage (not covered by standard CDW) | Actual cost — ISK 20,000–60,000 per tyre | See /insurance for tyre cover options. |
| Underbody, wheel arch, or suspension damage | Actual documented repair cost — not capped (not covered by any waiver) | Excluded from standard CDW. Not covered under any waiver tier. |
| Wrong fuel (misfuelling) | Actual cost to drain, flush, and repair | Diesel in petrol or petrol in diesel — check the fuel cap label. This is renter's liability with no cover. |
| River crossing or water damage | Actual documented repair cost | River crossings are not permitted under any circumstances and are not covered by any protection level. |
| Restricted / F-road the car isn't cleared for | Documented incremental response and recovery cost | A fixed fee of ISK 150,000 applies for driving off-road or on a road the vehicle is not cleared for, in addition to full liability for the resulting damage — waivers are void on an off-road or prohibited-road breach. We show each car's route permissions before you book. |
| Driver not listed on the rental agreement | Documented incremental response and recovery cost | Every named driver must be on the agreement (additional drivers ISK 1,250/day). If someone not on the agreement drives, a fixed fee of ISK 150,000 applies and you remain fully liable — with no cap — for any damage caused while the unauthorised driver drives; driving undeclared also voids your cover. |
| Damage administration fee (per damage claim) | Up to ISK 25,500 | Fixed handling fee added to each damage claim on top of the applicable excess, itemised on your written assessment. |
| Young driver (age 20–25) or senior driver (age 70+) | ISK 1,500/day | Per-day driver fee, shown in your quote before you commit. The young-driver fee applies only to vehicle categories marked at booking. |
| One-way rental between Keflavík Airport and Reykjavík | ISK 7,500 | Applies when pickup and return are at different locations. |
| Booking change (dates, vehicle, or services) | ISK 4,500 plus any rate difference | Amendment fee per the terms; if a change reduces the total price, the difference is not refunded except where the law requires. |
| Location fee — certain rentals only | ISK 9,300 | Applies only where stated in the booking process or on your voucher (for example certain broker bookings). If it is not in your booking breakdown, it does not apply. |
| Extra kilometres — limited-mileage offers only | ISK 52.5 per km | Standard rentals come with unlimited mileage. Where a specific offer states a mileage limit, the included kilometres appear in your rental agreement. |
| Out-of-hours airport pickup or return | ISK 11,250 | Per service. On public holidays the service fee is ISK 22,500. |
Exact amounts are confirmed in your rental agreement. For collision and exterior damage (CDW), see how damage works and insurance. For the road-use charge — official rental-car daily fee plus any processing estimate — see kilometre fee, tolls & parking.
Road-use charge — ISK 1,575 per started rental day
Unlimited kilometres are included in your rental. Iceland requires every car rental to account for the statutory kilometre fee (kílómetragjald) on behalf of the government. The official rental-car daily fee is ISK 1,390 per started rental day. Our current estimate shows ISK 1,575 per started rental day: the official fee plus an ISK 185 processing estimate, shown before booking.
Self-drive rental carries the standard 24% VAT, included in the rental price. The kilometre fee is shown as a separate, clearly-labelled line in your price breakdown, charged before or after the rental as the law requires.
Worked example
- 5-day rental → ISK 7,875
- 10-day rental → ISK 15,750
- 14-day rental → ISK 22,050
“Per started day” means a day begun counts as a full day — the same convention used for the rental rate itself. The fee appears as a clearly labelled line in your booking total and on your invoice before payment.
Official references: island.is/en/kilometer-fee and vegirokkarallra.is (the official 2026 kilometre-fee programme). Full explanation on our Driving in Iceland page.
Covers
Iceland's official rental-car daily road fee, plus the processing estimate shown before booking.
Does not cover — paid directly by you
- Tunnel tolls (e.g. Vaðlaheiðargöng, ISK 2,200 approx — pay via veggjald.is)
- Paid parking in Reykjavík and at some attractions
- National-park or site entry fees
Fuel policy — full-to-full
We operate a full-to-full fuel policy as standard: you collect the car with a full tank and return it full, and we never push prepaid fuel. Prepaid fuel is available as an optional extra if you would rather not refuel before returning.
If the car comes back with less fuel than it left with, we charge the cost of the missing fuel at current pump prices plus a refuelling service fee of ISK 3,000 to cover the time and admin of refuelling the vehicle. The fuel itself is charged at actual cost — no markup. Check the fuel cap label for your vehicle's fuel type (diesel or petrol) before filling up.
What we do not charge
Administration or booking fees — our price is your price
Third-party liability (TPL) — included on every rental by law, never an add-on
Airport pickup surcharges — KEF pickup terms shown before booking
Any markup on fuel — missing fuel is charged at the actual pump price, never above it (a flat refuelling service fee applies, shown in the fuel policy)
Pre-authorisation processing fees — the card hold costs you nothing
Loss-of-use fees without documented evidence of actual lost rental income
Any profit margin on pass-through fines, tolls, or repair costs — we charge actual cost + a real, modest admin fee
Do you take a deposit?
No deposit: your card is verified by a small pre-authorisation, released per your card issuer's procedures. A pre-authorisation is not a charge — the money stays in your account and is simply reserved while the verification is in place.
- Accepted credit cards: American Express, Mastercard, Visa, Discover and Diners — a 3.5% transaction fee applies to American Express, Discover and Diners payments. Cash in USD, EUR, GBP or ISK may be accepted on arrival.
- The verification pre-authorisation is released per your card issuer's procedures — issuer processing typically takes a few working days.
- If you choose Zero Excess, the covered-damage excess is ISK 0; exact card authorisation rules are confirmed at booking.
- The card on file may be charged for amounts owed under the rental agreement — damage not covered by waivers, excess amounts, fees, fines, tolls, missing fuel, cleaning or towing — during the rental and for a reasonable period after it ends, with an itemised notification.
Full details on how the damage and hold process works: How damage works →
If you ever receive a charge you do not understand, contact us — we will show you the evidence and walk through it with you.
Common questions
Will I be charged a fee for nothing?
No. We do not invent charges. Every item on this page is a genuine pass-through cost — a fine or toll issued to the vehicle, a cleaning bill for an unusually dirty return, or a documented actual cost you caused. We show you the evidence before any charge is processed.
How do I pay a fine I got while driving?
If you receive a paper ticket while driving, you can often pay it directly to the issuing authority. For speeding camera or parking fines that go to the registered keeper (us), we pass the original notice to you as soon as we receive it — usually within a day or two — so you can pay promptly and take advantage of the early-payment discount (typically 25% off in Iceland). Forwarding the notice itself costs nothing. If the notice goes unpaid and we are required to settle it, we recover the actual fine amount plus an ISK 3,000 handling fee.
Is there a deposit?
No deposit — your card is verified by a small pre-authorisation, released per your card issuer's procedures. Accepted credit cards are American Express, Mastercard, Visa, Discover and Diners; a 3.5% transaction fee applies to American Express, Discover and Diners payments. The card on file may be charged for amounts owed under the rental agreement (damage not covered by waivers, excess amounts, fees, fines, tolls, missing fuel, cleaning, towing), with an itemised notification.
What is the Vaðlaheiði tunnel toll and how do I pay it?
The Vaðlaheiði tunnel (in north Iceland, near Akureyri) charges a toll. The simplest way is to pay online at the tunnel authority's website within a few hours of passing through — the notice will show your payment window. If you do not pay and the toll reaches us as the registered keeper, we settle it and pass it on to you at actual cost plus an ISK 3,000 handling fee.
What counts as excessive cleaning?
Normal road dirt and dust is expected — Iceland is a dusty, muddy country and we factor that in. We only charge a cleaning fee when the vehicle is returned in a condition that requires special treatment: interior mud or sand that requires wet-vacuuming, food or drink spills soaked into seats, pet hair throughout the interior, or smells that require ozone treatment. If in doubt, a quick hoover before you return will almost always avoid it.